November 29, 2023

Delhi high court stays ED’s investigation against Hero MotoCorp’s Pawan Munjal

NEW DELHI: The Delhi high court on Friday stayed the Enforcement Directorate (ED) probe against Hero MotoCorp government chairman Pawan Munjal in reference to allegations that foreign currency echange identical to 54 crore was once illegally taken out of India by means of Munjal and others.

Pawan Munjal, executive chairman of Hero MotoCorp, India's largest maker of motorcycles and scooters, (REUTERS FILE PHOTO)
Pawan Munjal, government chairman of Hero MotoCorp, India’s biggest maker of bikes and scooters, (REUTERS FILE PHOTO)

A bench of justice Saurabh Banerjee ordered the keep at the cash laundering probe against Munjal at the flooring that the court on November 3 stayed complaints by means of the Directorate of Revenue Intelligence (DRI), which shaped the foundation for the ED case.

“Accordingly, there shall be a stay of proceedings under the ECIR (Enforcement Case Information Report),” the high court mentioned. The bench clarified that the keep most effective implemented to complaints against Pawan Munjal and ED was once unfastened to continue against different accused.

Munjal, showing via senior advocates Mukul Rohatgi, Sandeep Sethi and Dayanan Krishnan, reasoned that the ED probe may just now not proceed since there was once a keep at the DRI complaints.

“The cause of action is the (DRI) complaint. The show cause resulted in exoneration. In that case, the court stayed the proceedings… then this ECIR summons should be stayed. The result in this case will depend on the first matter,” Rohatgi argued.

Munjal has additionally requested the high court to quash the ECIR registered by means of ED in July 2023 and sought the ECIR’s information.

In August this yr, ED officers searched Munjal’s residential and industry premises and others as a part of its investigation. On November 10, ED hooked up 3 homes price 24.95 crore below the provisions of the Prevention of Money Laundering Act (PMLA), announcing Munjal were given issued foreign currency/foreign currency echange within the identify of different individuals and thereafter utilised the similar for his private expenditure out of the country.

ED mentioned this was once finished to override the bounds of $2,50,000 according to annum according to individual below RBI’s Liberalised Remittance Scheme. Under this scheme, all resident folks, together with minors, are allowed to freely remit as much as $2,50,000 according to monetary yr (April-March) for any permissible present or capital account transaction or a mixture of each, in keeping with the Reserve Bank of India (RBI).